first, netenyahu will still be prime minister.
second, the right is still dominates, especially on security matters. there is naftali bennet who most likely will be in the coalition. lapid himself will not sell out israel.
the elections were more about domestic issues, especially sharing the burden in the idf and housing.

Improving relations with other countries will be easy if Netanyahu and Lapid will form a coalition and keep the right wingers, including religious, outside. The world wants to see a chance for the Two States solution through direct negotiations with Palestinians.

The world media, while awash in their glee of seeing Netanyahu lose seats, seems to forget that the main election themes of those who gained seats had more to do with the economy and jobs than any restarting of the so-called peace process.

it makes no difference what government israel has since the arabs will not accept jewish sovereignty in israel. they consider the kotel(wailing wall) to be arab. so jews can't even have the kotel. so what exactly will these supremacists allow israel to have? most likely, a bullet in the head.

The international media is clueless. If anything, Lapid is slightly more hawkish than Bibi regarding the Palestinians. Both say no dividing Jerusalem, no going back to pre-67 borders. Lapid wants a great big wall between us and them and, as he said the other day "to be rid of them." Lapid is on the left on domestic issues like how much our cottage cheese should cost.